Criminal Law

Insider Trading Lessons For Executives

Posted on March 18, 2011
I am constantly amazed at the amount of insider trading cases brought by the Commission. While the SEC often goes overboard in their cases, and sues individuals who did nothing wrong, (see, Mark Cuban), the simple fact is there are far too many occasions where an individual, and in particular a corporate executive, is charged with insider trading...

SEC Charges Hedge Fund Managers with Fraud

Posted on March 18, 2011
The SEC has charged a hedge fund investment advisory firm and its two founders with orchestrating a multi-faceted scheme to defraud clients and failing to comply with fiduciary obligations.The SEC alleges that the founders misappropriated client assets, inflated assets under management, and filed false information with the SEC and that they looted approximately $1...

Facebook Pre-IPO Stock A Scam

Posted on March 16, 2011
(Bloomberg News) Facebook Inc.?s privately held shares that are trading before an initial public offering may be attracting con artists who exploit investor demand by selling bogus stock, the main U.S. brokerage regulator said.?While most pre-IPO offerings are legitimate, some are frauds in which con artists sell shares they do not actually have,? the Financial Industry Regulatory Authority said Tuesday in a statement...

Tax Consequences of Investments - Broker Duty to Consider?

Posted on March 08, 2011
In my view of the world, a broker has no duty to research or consider areas that are outside of their area of expertise, and tax implications of an investment are one of those areas. Excluding tax motivated investments, where the tax considerations  are the basis for the recommendation, it is the realm of tax attorneys and accountants to consider such issues, not brokers and advisers...

To access this complete feed in the blog feed reader login or register for free.

More Securities America Arbitrations Stayed in Favor of Class Actions

Posted on March 08, 2011
Securities arbitration claims against broker-dealers who sold shares of Medical Capital Holdings and Provident Royalties were being filed at a break-neck pace after the SEC charged the issuers with fraud in connection with the offerings. At the same time, class actions were filed across the country against the same brokerage firms...

BofA In A Panic? Unilaterally Imposes Garden Leave Provisions

Posted on March 08, 2011
It never ceases to amaze me that Bank of America has managed to stay in business. Personally, I always thought they were a terrible bank, with terrible rates, annoying terms and conditions, and really annoying marketing. As a brokerage firm, they have simply bumbled and stumbled their way through the acquisition of Merrill Lynch, turning a unique opportunity into a disaster...

Recruiting Bonus to Be Banned?

Posted on March 08, 2011
Last year Mary Shapiro started talking about bonuses on Wall Street and how bad they were. (That's almost funny given the source) and the SEC has finally gotten around to addressing the boss' concern.On Wednesday, the SEC proposed new rules aimed at reigning in incentive comp...

Why Is the Financial Services Industry Still Lukewarm About Social Media?

Posted on March 08, 2011
It's the regulators of course. Update on the use of social media by financial firms from Financial-Planning.com

FINRA Slaps Lincoln Financial for Major Security Stumble

Posted on February 19, 2011
According to press reports, Lincoln Financial has been allowing its brokers to access confidential customer information over the Internet, using any browser, without security software. It doesn't take much effort to figure out that this is not a good idea, but the fine of $600,000 might drive the point home.

Arbitration Award Forces Closing of B-D

Posted on February 07, 2011
QA3 Financial Corp, a independent broker dealer, announced that it was closing its doors next week. According to InvestmentNews.com, the decision came as a result of an arbitration award against the firm. If true, the firm didn't have much choice - an arbitration award is a hit on net capital...

Registration of Investment Advisers

Posted on February 01, 2011
Suddenly there are more questions about the registration and regulation of investment advisers. My column, Registration and Regulation of investment advisers answers most of them. It is online at SECLaw.com here.

SEC Approves FINRA Rule Change for All Public Arbitration Panels

Posted on February 01, 2011
The FINRA practice of requiring an "industry" arbitrator on all of its arbitration panels has finally come to an end. The requirement once upon a time had some merit, back in the day when arbitrations were simple, handled in a few afternoons, and were primarily simple disputes...

SEC Charges Attorney With Misconduct in Connection with Client Exam

Posted on January 30, 2011
The SEC instituted administrative proceedings against a Greenberg Traurig partner for engaging in improper professional conduct during an SEC examination. The SEC alleges that the attorney, in the course of an SEC examination of his client NewPoint Securities LLC in April and May 2009 ? altered private placement memoranda (PPMs) purportedly used in the offer and sale of securities issued by NewPoint Financial Services...

SEC Charges Attorney With Misconduct in Connection with Client Exam

Posted on January 30, 2011
The SEC instituted administrative proceedings against a Greenberg Traurig partner for engaging in improper professional conduct during an SEC examination. The SEC alleges that the attorney, in the course of an SEC examination of his client NewPoint Securities LLC in April and May 2009 ? altered private placement memoranda (PPMs) purportedly used in the offer and sale of securities issued by NewPoint Financial Services...

SEC Charges Attorney With Misconduct in Connection with Client Exam

Posted on January 28, 2011
The SEC instituted administrative proceedings against a Greenberg Traurig partner for engaging in improper professional conduct during an SEC examination. The SEC alleges that the attorney, in the course of an SEC examination of his client NewPoint Securities LLC in April and May 2009 ? altered private placement memoranda (PPMs) purportedly used in the offer and sale of securities issued by NewPoint Financial Services...

Breaking: FOX News Hires Olbermann

Posted on January 24, 2011
Sorry, I couldn't resist. More...

Do We Need a Department of Homeland Security or a TSA?

Posted on January 24, 2011
The simple answer is no, and given the clear evidence of all that they have taken away from us, there really should be no doubt. But read the explanation. More...

Seattle Activist Wins Case Against TSA

Posted on January 24, 2011
The entire TSA security process is drawing a great deal of attention, and more so since the introduction of evasive patdowns and the so-called "naked" body scanners. While I certainly understand the need for security at airports, the TSA seems to be more out of control with each passing day...

FINRA Foundation and NFL Team Up to Help Players Avoid Investment Fraud

Posted on January 24, 2011
Hopefully this is not simply a promotional stunt. We have all hear stories of professional athletes who wind up with no money at the end of their careers. I am not sure that the problem is with financial professionals, but anything that makes an investor more aware of his investments and enables them to make informed financial decisions is good for all professionals - financial and athletic...

JACK LALANNE dies at age 96.

Posted on January 24, 2011
His passing has nothing to do with securities law. I just always thought he was amazing. I remember watching him on TV back in the day when we only had a black and white television. I guess today, where every TV in my home is a high definition flat screen, it makes him seem to be more of an icon...

Lehman Principal Protected Note Arbitrations On The Rise

Posted on January 23, 2011
Lehman Principal Protected Note Arbitrations On The Rise More...

Congressman Wants Special Treatment By The TSA

Posted on January 18, 2011
Some Congressman, including James Clyburn, are using the Tuson shooting tragedy to argue for special privileges at airports, looking to by-pass the intrusive screening processes that they set up, through the TSA, for the rest of the country. It is an amazing peek into the minds of these elected officials, who seem to believe that they are better than the rest of us, and entitled to special treatment...

Madoff Investor Returns $7.2 Billion to the Bankruptcy Estate

Posted on December 17, 2010
The widow of deceased philanthropist Jeffry Picower has announced an agreement with the Madoff Trustee to return 7.2 billion dollars to the bankruptcy estate, which, according to the press release, represents "every penny received from almost 35 years of investing with Bernard Madoff...

FoxNews.com - FBI Investigating Gawker.com Hack

Posted on December 14, 2010
Investigators from the FBI were expected to meet with Gawker Media CEO Nick Denton Monday following the massive weekend hack by a group called Gnosis that paralyzed the media company?s website and temporarily forced it to stop publishing.

Friday Q&A - Are EFLs and Promissory Notes Enforceable?

Posted on December 03, 2010
Friday Q & A ? I recently left Bank of America after the ML merger, and they now want me to repay the bonus that I received. BofA killed my business, and ML actually made it worse? Do I have to repay the money? Will they settle or do I have to go to arbitration?This is almost becoming a daily question in our office, and not only with Bank of America reps...

36th Annual Securities Law Moot Court Competition Seeks Teams and Judges

Posted on November 27, 2010
When I was a law student Moot Court competitions were a big part of my legal education. I participated in two competitions at our school, authored and co-chaired another, and represented my school at a national competition in North Carolina. I also severed on our Moot Court Executive Board in my third year, and believe that the entire experience enhanced my law school education...

TSA Workers Complain of Abuse

Posted on November 23, 2010
Great collection of clips and comments from Instapundit. Apparently the gropers are being called ?Molester, pervert, disgusting, an embarrassment, creep." While lashing out against a low paid worker for the outrageous policies of his employer may not be fair, what did they expect after conducting an unncessary and fruitless invasion of privacy? A thank you? Read the collection here...

A Sucker's Play -- Each $1 in Higher Taxes Results in $1.17 of New Spending

Posted on November 23, 2010
Linked from the Tax Professor Blog, and interesting reading even if you don't know a thing about taxes. Best line of the article - "Our research confirms what the late economist Milton Friedman said of Congress many years ago: 'Politicians will always spend every penny of tax raised and whatever else they can get away with...

More Merrill Brokers Suing BofA over Deferred Compensation

Posted on November 09, 2010
The fallout from the turmoil created for employees as the investment banks failed in 2008 continues. Brokers, traders, salespersons and other employees are suing over compensation which was denied to them, as the investment banks attempted to balance their books...

65% Favor Getting Rid of Entire Congress and Starting Over

Posted on October 29, 2010
Interesting survey from Rasmussen. I would have thought it would be higher.65% Favor Getting Rid of Entire Congress and Starting Over - Rasmussen Reports™A new Rasmussen Reports national telephone survey finds that 65% of Likely U.S. Voters say if they had the option next week, they would vote to get rid of the entire Congress and start all over again.

Bloggers, promote your law blog by nominating your blog for inclusion in USLaw.com's Law Blog Directory and RSS Reader. Benefits described.